An Increase in Demand Occurs When

question 256

Multiple Choice

An increase in demand occurs when

• A) we measure price in money price rather than real price.
• B) we move up the demand curve.
• C) the demand curve shifts to the right.
• D) the demand curve shifts to the left.

---

Definitions:

Vertical Axis

The y-axis on a graph or chart which is usually used to measure and represent the dependent variable.

Utility Function

A mathematical representation that associates levels of satisfaction or utility with consumption of goods and services.

Indifference Curves

Graphs representing different bundles of goods between which a consumer is indifferent, showing combinations that provide the same level of utility to the consumer.

Horizontal Axis

In a graph or chart, the x-axis running horizontally, typically used to represent the independent variable or the base of comparison.